Gold prices in India ended the week on a strong note to hit another record high, tracking a firm global trend. On MCX, gold futures on Friday ended 1.7% higher at 38,810 per 10 gram Friday. Earlier in the session, they hit a new high life time high of 38,821. Silver futures on MCX also hit a new high of 44,627, rising 1.6%. The latest boost for gold prices came an escalation in US-China trade war and somewhat dovish comments from US Federal Reserve chief.

Federal Reserve Chair Jerome Powell on Friday said the central bank would "act as appropriate" to keep the US economy healthy in a deteriorating global economy, but stopped short of committing to rapid-fire rate cuts. In global markets, gold rose 2% to a six-year high of $1,537 on the Comex in New York on Friday.

In escalation of trade war with China, US President Donald Trump ratcheted up the rhetoric on China, ordering US companies to look at ways to close operations in the country, which sent equities tumbling and drove further inflows into safe-haven gold. This came after China unveiled retaliatory tariffs against about $75 billion worth of U.S. goods.

Gold in global markets has risen nearly 8% so far this month and about 19% this year. Traders are betting on a rate cut from the US Federal Reserve next month. Lower rates increase the appeal of non-interest yielding gold.

In India however high gold prices have hit demand. With domestic gold prices soaring, gold was being sold at a discount for the 12th straight week, Reuters reported. Dealers were offering a discount of up to $31 an ounce over official domestic prices, down from last week's $33 discounts.

Apart from global rates, rupee-dollar exchange rate and import duties determine the landed price of gold in India, which imports most of its gold requirement.

The domestic price includes a 12.5% import tax and 3% sales tax.

Jewellers have also reported getting a large amount of old gold jewellery in scrap as some consumers took advantage of higher prices. (With Agency Inputs)